Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

13 Jan 2004



PSD disclosed:

10 Dec 2003

Project Description

The proposed project comprises the creation of a real estate investment fund in form of a strictly regulated Luxembourg SICAV. The total size of the fund is expected to be up to € 300 million in equity initially contributed by institutional investors. Assicurazioni Generali Group Generali), which contributes up to € 90 million, is the anchor investor and sponsor. EBRD will contribute up to 25% (max € 75 million).
The fund's key objective is to create an investment product backed by stable income from first class properties with pre-structured exit options for the institutional investors, in order to attract private retail investors.
The fund will invest in real estate of the EU accession countries: Hungary, Poland, Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Romania and Bulgaria (the Region).

Transition Impact

The strategic input of the Bank is essential in various aspects:
  • The key objective of the Bank's involvement in the project is the development of the market for retail investment in Central and Eastern European property by supporting the introduction of a presently unavailable investment instrument. The fund will initially focus on attracting conservative institutional investors willing to commit their funds to investment into first class properties in the Region which will constitute the fund's portfolio. The stable performance of the fund's portfolio is expected to attract retail investors to the fund, thereby replacing the institutional investors.
  • The fund's legal structure as a strictly regulated Luxembourg domiciled SICAV represents an instrument well known to private retail investors. The mobilisation of private individual risk capital to invest in Central European real estate is a key element to realise pre-structured exit options pursued by the fund as a preferred exit route for the institutional investors.
  • The participation of the EBRD will also help to attract new institutional investors to the Region in the initial phase of the fund.
  • In addition, the fund will foster the further development of the real estate secondary market of the Region. When acquiring income producing properties, the fund will create an institutional take-out market for development assets which still only exists fragmentally in the Region. This will provide much needed liquidity and give confidence to developers and equity investors, thus encouraging their continued participation in the primary and secondary real estate markets.
  • The Bank's and Generali's participation in the fund will create a high demonstration effect to the future private investors market. The Bank's long standing experience and successful track record as equity investor in the property market of the Region, as well as the Bank's vigorous corporate governance policy, will raise trust and confidence of private investors to invest in Central Europe.

The Client

Assicurazioni Generali Group, a leading insurance group in Europe, will act as the anchor investor of the fund, committing up to € 90 million or 30% of the fund's equity.
Generali's affiliate, GLL Real Estate Partners GmbH (GLL) will act as the sponsor and fund manager. Other co-owners of GLL are Lend Lease and GLL's senior management.

EBRD Finance

The Bank will invest up to € 75 million or maximum 25% of the fund's equity acting as one of the anchor investors.

Project Cost

Up to € 300 million.

Environmental Impact

The Fund will adopt environmental procedures in accordance with the EBRD's environmental procedures for Property Development and Acquisition Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation


Company Contact

GLL Real Estate Partners GmbH
Mr. Barry McGowan
Chief Investment Officer

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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